We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Monster Beverage (MNST) Stock Down on Q3 Earnings Miss
Read MoreHide Full Article
Shares of Monster Beverage Corporation (MNST - Free Report) declined 5.18% in afterhours on Nov 3, as the energy drink company’s third-quarter numbers did not meet expectations.
Third Quarter Details
Monster Beverage’s third-quarter adjusted earnings of 99 cents per share missed the Zacks Consensus Estimate of $1.12 by 11.6%. Meanwhile, earnings increased 17.9% year over year on lower share count as a result of the completion of the modified Dutch auction in Jun 2016.
Net sales of $787.95 million missed the Zacks Consensus Estimate of $817.20 million by 3.6%. However, the figure improved 4.1% year over year.
Foreign currency had an unfavorable impact of $2.6 million on net sales. Net sales outside the U.S. rose 11.8% to $190.8 million on a year-over-year basis.
The effective tax rate in the third quarter was 33.8 %, compared with 39.4% a year ago. The decrease in the effective tax rate was due to a one-time tax benefit related to a prior period domestic production deduction.
As a result of the AFF transaction, the company achieved raw material cost savings of $23.3 million in the third quarter.
Segment Details
Monster Energy Drinks Segment: The segment reported net sales of $710.1 million, up 3.4% year over year.
Strategic Brands segment: This segment includes brands acquired from Coca-Cola. Net sales at the segment increased 3.2% to $72.1 million in the third quarter of 2016 compared with $69.9 million in the comparable quarter of 2015.
Other: Net sales for the company's Other segment, which includes certain products of American Fruits & Flavors sold to independent third parties, were $5.7 million in the quarter under review. Notably, the segment had reported no net sales in the prior-year quarter.
Margins
Third-quarter 2016 gross margin rose 230 basis points (bps) to 63.8%. Operating income in the third quarter was $290.4 million, compared with $291.4 million in the prior-year quarter.
Some better-ranked stocks in this industry include Post Embotelladora Andina S.A. (AKO.B - Free Report) , Coca-Cola Amatil Limited and DAVIDsTEA Inc. .
Coca-Cola Amatil is likely to see a 10.81% rise in 2016 earnings. The company carries a Zacks Rank #2 (Buy).
DAVIDsTEA carries a Zanks Rank #2. Full-year 2017 earnings growth is projected at 29.03% for the company.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Monster Beverage (MNST) Stock Down on Q3 Earnings Miss
Shares of Monster Beverage Corporation (MNST - Free Report) declined 5.18% in afterhours on Nov 3, as the energy drink company’s third-quarter numbers did not meet expectations.
Third Quarter Details
Monster Beverage’s third-quarter adjusted earnings of 99 cents per share missed the Zacks Consensus Estimate of $1.12 by 11.6%. Meanwhile, earnings increased 17.9% year over year on lower share count as a result of the completion of the modified Dutch auction in Jun 2016.
Net sales of $787.95 million missed the Zacks Consensus Estimate of $817.20 million by 3.6%. However, the figure improved 4.1% year over year.
Foreign currency had an unfavorable impact of $2.6 million on net sales. Net sales outside the U.S. rose 11.8% to $190.8 million on a year-over-year basis.
The effective tax rate in the third quarter was 33.8 %, compared with 39.4% a year ago. The decrease in the effective tax rate was due to a one-time tax benefit related to a prior period domestic production deduction.
As a result of the AFF transaction, the company achieved raw material cost savings of $23.3 million in the third quarter.
Segment Details
Monster Energy Drinks Segment: The segment reported net sales of $710.1 million, up 3.4% year over year.
Strategic Brands segment: This segment includes brands acquired from Coca-Cola. Net sales at the segment increased 3.2% to $72.1 million in the third quarter of 2016 compared with $69.9 million in the comparable quarter of 2015.
Other: Net sales for the company's Other segment, which includes certain products of American Fruits & Flavors sold to independent third parties, were $5.7 million in the quarter under review. Notably, the segment had reported no net sales in the prior-year quarter.
Margins
Third-quarter 2016 gross margin rose 230 basis points (bps) to 63.8%.
Operating income in the third quarter was $290.4 million, compared with $291.4 million in the prior-year quarter.
MONSTER BEVERAG Price, Consensus and EPS Surprise
MONSTER BEVERAG Price, Consensus and EPS Surprise | MONSTER BEVERAG Quote
Monster Beverage carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in this industry include Post Embotelladora Andina S.A. (AKO.B - Free Report) , Coca-Cola Amatil Limited and DAVIDsTEA Inc. .
Embotelladora – a Zacks Rank #1 (Strong Buy) stock – is expected to witness a 6.47% decline in 2016 earnings. You can see the complete list of today’s Zacks #1 Rank stocks here.
Coca-Cola Amatil is likely to see a 10.81% rise in 2016 earnings. The company carries a Zacks Rank #2 (Buy).
DAVIDsTEA carries a Zanks Rank #2. Full-year 2017 earnings growth is projected at 29.03% for the company.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>